Propane prices rallied on Thursday, amid gain in crude futures but showing independent strength by far outpacing them in percentage gains. Brent crude added 0.8% and WTI crude climbed 1.1% higher with a continued rally in equities and a further sell-off in the US dollar index. Mt. Belvieu TET prices rocketed 7.9% (5 cents) higher to 68.25c/g, and Conway spot price surged 8.7% (5.12 cents) higher to 63.75c/g. Natural gas futures were no source of support, falling 1.5% despite a supportive weekly storage report from the EIA.
PROPANE SPOT PRICES AND SPREADS
Crude futures opened weaker, threatening to snap their rally, but recovered and were seeing further gains as of this writing. WTI futures were up 1.4% and Brent crude futures had gained 0.9%. Propane prices were rallying further, with Mt. Belvieu TET up another 4.6% (3.13 cents) at 71.38c/g (non-TET at 70.88c/g) and with Conway spots up another 4% (2.5 cents) at 66.25c/g. Platts reports that Asia propane prices have hit an 11-month high amid this rally, and with winter demand. In other news, OPIS reports that the first two-stroke LPG dual-fuel engine-powered VLGC has set off with an LPG cargo from Enterprise's Houston Ship Channel terminal with 590,000 barrels of LPG (some to be used as fuel). This is the first of 15 planned retrofits by BW LPG.
Propane Stocks
